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EMD-78-86 1 (1979-06-15)

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BY THE COMPTROLLER GENERAL


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      kM109649


Report To The Congress


OF THE UNITED STATES


Policy Needed To Guide

Natural Gas Regulation

On Federal Lands



The Government needs to establish (1) regula-
tions to guide lessees' activities for the explo-
ration, development, and production of
natural gas from Federal lands and (2) a
policy on the role of natural gas produced
from  Federal lands in the context of a
national gas policy relative to the Nation's
total energy needs and resources.

The Department of Energy has taken little or
no action to develop a policy. At the same
time, the Department of the Interior is con-
tinuing to spend millions to study the produc-
tion potential of developed fields on the Gulf
of Mexico Outer Continental Shelf without
the benefit of policy guidance.

A  companion report, issued concurrently
entitled Natural Gas Reserves Estimates: A
Good Federal Program Emerging, but Prob-
lems and Duplications Persist' (EMD-78-68),
reviews the Government's efforts to obtain
credible estimates of the Nation's natural gas
reserves.







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     EMD-78-86
JUNE '15, 1979


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